The market has witnessed multiple down days in last 15 trading sessions, but it still is down only around 3% from top.
Three back to back up days or down days have been rare in the last 15 days. Yesterday there was no follow through selling, so likely scenario today is bounce.
As I talked about it in my last night video, the selling so far has not been aggressive and many stocks are holding up well and some are setting up nicely for up move.
What this market needs is a breadth thrust. For that a catalyst will be needed. As of now there is no catalyst for upside breakout. The European debt trouble is possible downside catalyst.
In last 4 months the market has had lot to worry about. The Middle East revolution, Japanese Earthquake, US debt downgrade, and now Europe debt worries, but every time it has jumped back from those worries.
Sentiments have moved from extreme bullish to bearish in few months. So all in all it is a volatile range. You have to look at one day at a time.